Does Micron's New and Improved Price Make Sense After Earnings? - Yahoo Finance

Following a strong third-quarter earnings report, Micron Technology (MU) stock surged 19.2% as the company significantly exceeded analyst expectations. While Wall Street had forecast earnings of $20.7... Read original →

Micron's earnings surge stems from structural demand for HBM driven by AI infrastructure and acute shortages in automotive DRAM—not a cyclical blip. Its 80.4% operating margin reflects cost leadership from 1β-node yields and advanced packaging, forcing Samsung and SK Hynix to accelerate CoWoS-compatible memory development or risk exclusion from NVIDIA’s next-gen Blackwell Ultra ecosystem. Geopolitically, while U.S. CHIPS Act subsidies ease capex burdens, any disruption to Taiwan, China-based capacity would elevate Micron’s Idaho and Hiroshima fabs as strategic backups—at the cost of higher depreciation. Samsung may resort to price cuts in PC/mobile segments but can’t displace Micron’s HBM3E lead. Over the next 18 months, co-packaged optics and near-memory computing will amplify memory vendors’ pricing power, making Micron’s current 16.3x P/E a clear undervaluation of its architectural leverage.